If you were going to put a rule of thumb to work I would say it is probably going to be hard to make competitive returns on your investment in such a high priced market.

If so then the tenant has to adhere to not only that programs rules but the housing authority's rules as well.

Amy,Anything more than -20% equity is a good rule of thumb where it is past the point of any type of sub-to or creative financing deal is possible.Larry Chafe

However, as a rule, I would price the flip to sell and clear that hurdle quickly if they next deal is really worth pursuing.

I don't think I'd bank on the sale price of a MFH increasing enough to justify that style of investment.

While that's a good start, the rules vary from state to state and there can even be variations in different counties within a state.

Also good point on HOA rental rules.

Additional ways to gauge value or whether to sell: cap rates gross rent multipliers comparable sales of similar triplex's fourplexes sales price per unit 1% or 2% rule on comparable properties or alternatives and more...

Does anyone know about this new law/rule??

Check out the "50% rule" to help you analyze potential properties.